Click here to close now.




















Welcome!

Microsoft Cloud Authors: Elizabeth White, Adine Deford, the Editor, Michael Krems, Xenia von Wedel

News Feed Item

Aveda Transportation and Energy Services Announces Record Revenue for the Third Quarter of 2012

CALGARY, ALBERTA -- (Marketwire) -- 11/29/12 -- Aveda Transportation and Energy Services Inc. ("Aveda" or the "Company") (TSX VENTURE:AVE), a leading provider of oilfield hauling services and equipment rentals to the energy industry, today announced record revenue for the three and nine months ended September 30, 2012.

2012 BUSINESS HIGHLIGHTS


--  Revenue for the nine months ended September 30, 2012 grew by $7.7
    million to $60.3 million compared with revenue of $52.6 million for the
    same period in 2011; 
--  Generated net loss for the nine months ended September 30, 2012 of $0.8
    million, as compared to net income of $2.3 million for the same period
    in 2011; 
--  Generated Adjusted EBITDA(1) for the nine months ended September 30,
    2012 of $7.2 million, a decrease of $1.5 million compared with Adjusted
    EBITDA(1) of $8.7 million for the same period in 2011; 
--  Expanded equipment base by acquiring $22.5 million of net additional
    equipment and leaseholds during the first nine months of 2012; 
--  Commenced operations in new branches in Pleasanton, TX and Midland, TX.
    The Company signed a new lease on a new Pennsylvania facility that will
    see its operations move from New Columbia to Williamsport, PA in early
    2013; 
--  Raised $8.0 million ($7.2 million net of financing costs) in new equity
    financing, and increased its existing credit facility to $50 million
    from $35 million; 
--  Acquired selected assets of 1st Rate Energy Services Inc. and a private
    company called Complete Energy Services Inc. together referred to as
    "Complete" for approximately $7.5 million. As a result of the
    acquisition the Company increased its rental fleet by 270 pieces of
    equipment and established operation in Sylvan Lake, AB ; 
--  The Company elected to close its Crossfield, AB rental operation and
    combine it with the newly acquired Sylvan Lake, AB operation; 
--  Following consecutive periods of poor performance, the Company elected
    to close its Melita, MB and Grande Prairie, AB branches and allocated
    its fleet assets amongst other branches; and 
--  Relocated Nisku, AB branch to Leduc, AB and added rig moving to the
    operation along with service work. 

Note:

(1) See MD&A Section 8: Non-IFRS Measure

"Despite current market pressures, we have demonstrated that our customers value our services highly which allowed us to continue to grow our operations" said David Werklund, Executive Chairman of Aveda "We continue to build on our strength and lay the foundation for future growth, to become a highly profitable transportation and rentals company to serve the energy industry."

The Company's consolidated financial statements and Management's Discussion and Analysis are available on the Company's website at www.avedaenergy.com or the SEDAR website at www.sedar.com.

Financial Overview


(in thousands, except                                                       
 per share and ratio                                                        
 amounts)                                                                   
----------------------                                                      
                                                                            
                 Nine      Nine                 Three     Three             
               Months    Months                Months    Months             
                ended     Ended                 Ended     Ended             
            September September    % Change September September    % Change 
             30, 2012  30, 2011 2011 - 2012  30, 2012  30, 2011 2010 - 2011 
            ----------------------------------------------------------------
Revenue        60,316    52,607        14.7%   19,936    18,106        10.1%
Gross                                                                       
 profit(5)     10,596    12,857       -17.6%    3,492     4,557       -23.4%
Gross margin     17.6%     24.4%      -28.1%     17.5%     25.2%      -30.4%
                                                                            
Adjusted                                                                    
 EBITDA(1)      7,208     8,677       -16.9%    2,863     2,890        -0.9%
Adjusted                                                                    
 EBITDA(1)                                                                  
 as a                                                                       
 percentage                                                                 
 of revenue      12.0%     16.5%      -27.5%     14.4%     16.0%      -10.0%
                                                                            
Net income                                                                  
 (loss)          (761)    2,263      -133.6%     (431)    1,676      -125.7%
Net income                                                                  
 (loss) as a                                                                
 percentage                                                                 
 of revenue      -1.3%      4.3%     -129.3%     -2.2%      9.3%     -123.4%
                                                                            
Adjusted                                                                    
 EBITDA per                                                                 
 share(1,2)      0.86      1.52       -43.4%     0.29      0.50       -42.0%
                                                                            
Earnings per                                                                
 share -                                                                    
 basic and                                                                  
 diluted(2)     (0.09)     0.40      -122.5%    (0.04)     0.29      -113.8%
                                                                            
Current                                                                     
 ratio           2.94      0.65       352.1%     2.94      0.65       352.1%
                                                                            
Debt to                                                                     
 equity                                                                     
 ratio(3)        1.53      1.43         6.3%     1.53      1.43         6.3%
                                                                            
Debt to                                                                     
 EBITDA                                                                     
 ratio(3, 4)     3.76      1.74       116.3%     3.76      1.74       116.3%
                                                                            
Net capital                                                                 
 assets                                 Not                             Not 
 addition      22,448        12  Meaningful    11,908        (1) Meaningful 
                                                                            
Notes:                                                                      
(1)  This News Release contains the term Adjusted EBITDA. Adjusted EBITDA as
     presented does not have any standardized meaning prescribed by         
     international financial reporting standards (IFRS) and therefore it may
     not be comparable with the calculation of similar measures for other   
     entities. Management uses Adjusted EBITDA to analyze the operating     
     performance of the business. Adjusted EBITDA as presented is not       
     intended to represent cash provided by operating activities, net       
     earnings or other measures of financial performance calculated in      
     accordance with IFRS. It is defined as earnings before interest, taxes,
     depreciation and amortization excluding foreign exchange gains or      
     losses which are primarily related to the US dollar activities of the  
     Company and can vary significantly depending on exchange rate          
     fluctuations, which are beyond the control of the Company, and write   
     downs of intangible assets, goodwill impairment, financing costs, gains
     or losses on disposal of assets, stock based compensation, fees and    
     expenses on settlement of debt and losses on extinguishment of debt.   
(2)  2011 Per share amounts calculated to take into consideration the       
     Company's 30:1 share consolidation which took place on November 28,    
     2011 as if the share consolidation had been in effect throughout 2011. 
(3)  Debt includes, revolving credit facility, loans and borrowings,        
     obligations under finance lease and convertible debenture as per their 
     carrying amounts on the balance sheet.                                 
(4)  Nine and three months ended September 30 debt to EBITDA ratio          
     calculated using Adjusted EBITDA for the trailing 12 months.           
(5)  Gross profit calculated as revenue less direct operating expense.      

Outlook

The Company earns revenue primarily by providing specialized transportation services to companies engaged in drilling for exploration, development and production of petroleum resources. Demand for the Company's transportation services is therefore linked to the economic conditions of the energy industry and the general level of activity in the exploration, development and production of petroleum resources in Western Canada and in the US. Drilling activity in the WCSB and in the US has in recent history been affected by amongst other things, low natural gas prices and higher than normal natural gas inventories in storage caused by many factors including reduced demand for commodities as a consequence of a global recession and the temporary oversupply of natural gas caused by the fast development of shale gas resources in the US.

Countering these factors is a strong price for oil, which has allowed oil-focused regions to experience increasing rig counts. Two of Aveda's newest branches are benefitting from such increases in Texas, while other US branches have been successful in maintaining revenues and margins despite reduced rig-counts in gas-focused regions such as the Dallas-Ft. Worth basin and the Utica and Marcellus Shale.

In the WCSB, although up to July 2012 rig counts were higher than 2011, levels of activity failed to ramp up(1) to the expected levels in Q3 due mainly to rainy weather conditions. A return to higher activity levels is expected in Q4 as oil and gas companies increase drilling operations with the arrival of the cold weather and the use of their remaining drilling budgets, although it is uncertain if rig counts will return to 2011 levels for the remaining of the year.

Opportunities for expansion and growth continue to appear strongest in the US. According to the Baker Hughes Rig Count(2), drilling activity in the Eagleford and Permian basins has increased on average 30.8% year over year. This has allowed Aveda to grow significantly in these areas, with the opening of two new branches (Pleasanton and Midland) in 2012. The Mineral Wells branch is expected to maintain revenues by acquiring new customers in higher activity areas, to compensate for reduced activity in the Dallas/Ft. Worth gas basin where it operates. Similarly, Pennsylvania has experienced a decline of 30% in active rigs due to the predominance of gas plays in the region, but Aveda's local branch has been able to maintain equipment utilization due to excellent customer relationships and recognized superior operational efficiencies compared to competitors. It is expected that rig counts will continue the downward trend in Pennsylvania gas plays, however management believes the decline may be partially offset by the relocation of rigs to oil plays further west in the state.

The North American economy faces several macro-economic uncertainties, such as, the US fiscal cliff related to the Budget Control Act, the on-going European debt crisis, and the impact of the economic slowdown in China. It is not clear at this time what impact, if any, these uncertainties will have on the North American oil and gas industry and conversely on the operations of the Company. The Company is monitoring these macro-economic issues through feedback from its customers and will adjust its operations as necessary.

(1) June Warren Nickels Rig Locator, accessed on October 15, 2012, at www.riglocator.ca

(2) Baker Hughes Rig Count, accessed on October 15, 2012, http://investor.shareholder.com/bhi/rig_counts/rc_index.cfm

About Aveda Transportation and Energy Services

Aveda provides specialized transportation of products, materials, supplies and equipment required for the exploration, development and production of petroleum resources in the Western Canadian Sedimentary Basin and in the United States of America principally in and around the states of Texas and Pennsylvania. Transportation services include both the equipment necessary to move the load as well as a trained, professional driver capable of securing, moving and manipulating the load at its origin and destination. Aveda's rental operations include the rental of tanks, mats, pickers, light towers and other equipment necessary for oilfield operations.

Aveda was incorporated in 1994 as a private company to serve the oil and gas industry. In the spring of 2006 the Company went public on the TSX Venture Exchange. Aveda has major operations in Calgary, AB, Slave Lake, AB, Leduc, AB, Sylvan Lake, AB Mineral Wells, TX, Pleasanton, TX, Midland, TX and New Columbia, PA. Aveda is publicly traded on the TSX Venture Exchange under the symbol AVE. For more information on Aveda please visit www.avedaenergy.com.

This News Release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "could", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "may", "will", "project", "should" or similar words, including negatives thereof, suggesting future outcomes. In particular, this News Release contains forward-looking statements relating to: demand for the Company's services and general industry activity level; the Company's growth opportunities; and expectation to maintain revenue and equipment utilization. Aveda believes the expectations reflected in such forward-looking statements are reasonable as of the date hereof but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon.

Various material factors and assumptions are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking statements. Those material factors and assumptions are based on information currently available to Aveda, including information obtained from third party industry analysts and other third party sources. In some instances, material assumptions and material factors are presented elsewhere in this News Release in connection with the forward-looking statements. Readers are cautioned that the following list of material factors and assumptions is not exhaustive. Specific material factors and assumptions include, but are not limited to:


--  the performance of Aveda's businesses, including current business and
    economic trends;
    
--  oil and natural gas commodity prices and production levels;
    
--  the effect of the rebranding on Aveda's businesses;
    
--  capital expenditure programs and other expenditures by Aveda and its
    customers:
    
--  the ability of Aveda to retain and hire qualified personnel;
    
--  the ability of Aveda to obtain parts, consumables, equipment,
    technology, and supplies in a timely manner to carry out its activities;
    
--  the ability of Aveda to maintain good working relationships with key
    suppliers;
    
--  the ability of Aveda to market its services successfully to existing and
    new customers;
    
--  the ability of Aveda to obtain timely financing on acceptable terms;
    
--  currency exchange and interest rates;
    
--  risks associated with foreign operations;
    
--  changes under governmental regulatory regimes and tax, environmental and
    other laws in Canada and the United States; and
    
--  a stable competitive environment. 

Forward-looking statements are not a guarantee of future performance and involve a number of risks and uncertainties, some of which are described herein. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Aveda's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, the risks identified in Aveda's annual information form and management discussion and analysis for the year ended December 31, 2011 (the "MD&A"). Any forward-looking statements are made as of the date hereof and, except as required by law, Aveda assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise.

This News Release contains the terms EBITDA and Adjusted EBITDA which are defined in the MD&A. EBITDA and Adjusted EBITDA as presented do not have any standardized meaning prescribed by international financial reporting standards (IFRS) and therefore may not be comparable with the calculation of similar measures for other entities. Management uses Adjusted EBITDA to analyze the operating performance of the business. Adjusted EBITDA as presented is not intended to represent cash provided by operating activities, net earnings or other measures of financial performance calculated in accordance with IFRS.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
While many app developers are comfortable building apps for the smartphone, there is a whole new world out there. In his session at @ThingsExpo, Narayan Sainaney, Co-founder and CTO of Mojio, will discuss how the business case for connected car apps is growing and, with open platform companies having already done the heavy lifting, there really is no barrier to entry.
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of technology leadership, Micron's memory solutions enable the world's most innovative computing, consumer,...
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes about through a Communications Platform as a Service which allows for messaging, screen sharing, video...
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of streaming data in the cloud with an enterprise grade SLA. It features built-in integration with Azur...
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and analyzed? As an area of investment, how might a retail company move towards an innovation methodolo...
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Treloar, President and COO of Bebaio, will explore examples of brands transforming their businesses by t...
A producer of the first smartphones and tablets, presenter Lee M. Williams will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater. In his session at @ThingsExpo, Lee Williams, COO of ETwater, will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater.
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevOps to advance innovation and increase agility. Specializing in designing, imple...
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
The Internet of Things (IoT) is about the digitization of physical assets including sensors, devices, machines, gateways, and the network. It creates possibilities for significant value creation and new revenue generating business models via data democratization and ubiquitous analytics across IoT networks. The explosion of data in all forms in IoT requires a more robust and broader lens in order to enable smarter timely actions and better outcomes. Business operations become the key driver of IoT applications and projects. Business operations, IT, and data scientists need advanced analytics t...
Akana has announced the availability of the new Akana Healthcare Solution. The API-driven solution helps healthcare organizations accelerate their transition to being secure, digitally interoperable businesses. It leverages the Health Level Seven International Fast Healthcare Interoperability Resources (HL7 FHIR) standard to enable broader business use of medical data. Akana developed the Healthcare Solution in response to healthcare businesses that want to increase electronic, multi-device access to health records while reducing operating costs and complying with government regulations.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...
MuleSoft has announced the findings of its 2015 Connectivity Benchmark Report on the adoption and business impact of APIs. The findings suggest traditional businesses are quickly evolving into "composable enterprises" built out of hundreds of connected software services, applications and devices. Most are embracing the Internet of Things (IoT) and microservices technologies like Docker. A majority are integrating wearables, like smart watches, and more than half plan to generate revenue with APIs within the next year.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...